So, there’s a potential BTC upward correction with good risk reward ratio. However, as we all know, the market could always surprise us. What if we continue to drop to 4k? What could increase our chances of a winning trade? Here are the four common but key confirmations we love for entering major positions at the targeted zones. - RSI goes to overbought/oversold territories - RSI bullish divergence - MACD bullish divergence - RSI holds/fails its EMA and SMA
You’ve probably heard the first three confirmations before. Even though these are very common, they are very powerful if consistently used. The last confirmation is also key as it increases our chances of not getting caught in the “never ending divergences”. For more examples of the last confirmation, see below.
For the bigger picture, the following two ideas still hold.
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Since we've been asked several times, we published the RSI script we commonly use in the analysis. If you want to use the script, you can simply go to the post below, click "Add to Favorite Scripts". Then find the indicator by clicking indicators, then Favorite. tradingview.com/script/W3zuPKLr-RSI-with-Moving-Averages/